AppLovin, a mobile app technology company, has announced an offer worth $20 billion to acquire Unicity

AppLovin, a mobile app technology company, has announced an offer worth $20 billion to acquire Unici ...

Specifically, each share of Unity common stock would be divided for 1.152 shares of AppLovin Class A voting common stock and 0.314 shares of AppLovin Class C non-voting common stock.

Unity shareholders would receive about 55 percent of the outstanding shares of the combined corporation if the agreement seizes. The total enterprise value of the transaction is $20 billion.

Adam Foroughi, the CEO of AppLovin, believes the combined company would have a tremendous growth potential and would generate estimated earnings of more than $3 billion by the end of 2024. According to AppLovin, current Unity CEO John Riccitiello will serve as CEO of the combined company, while Foroughi will serve as COO. The board of directors would also be moved to avert Unity's growth stake.

AppLovin was founded in 2012 and operated in secret mode until 2014. It assists developers in the market and monetization of their apps as well as analyze its reach, and they also have a mobile gaming publishing studio called Lion Studios.

The package demonstrates an ongoing effort to strengthen the gaming industry through mega mergers. Microsoft agreed to purchase ZeniMax for $7.5 billion in late January, while Take-Two Interactive purchased developer Zynga for $12.7 billion. A week later, Microsoft announced a massive $68.7 billion acquisition of Activision Blizzard. Sony responded by purchasing Bungie for $3.6 billion.

Regulators from the United States and the United Kingdom are taking a look at Microsoft's planned purchase of Activision Blizzard to ensure it does not violate anti-competitive practices. The CMA's investigation will put the acquisition on ice until at least September 1, but the FTC's inspection may throw things out beyond that deadline.

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